I remember looking at two tokenized assets once and assuming the more liquid underlying stock would automatically make the better collateral. But borrowing markets don’t price assets that simply. What caught my attention with TermMax is that fixed rates could expose a different kind of valuation.
If tokenized stocks are used as collateral to borrow stablecoins, each market starts producing its own funding rate. A highly liquid stock with reliable pricing and strong borrower demand might clear at one rate, while thinner or more volatile collateral needs another. Suddenly the rate is doing more than pricing money. It is quietly pricing how comfortable lenders are holding exposure against that collateral.
That could create a tokenized stock funding curve.
But I think the retention problem matters. One burst of borrowing after a new RWA listing tells me very little. I’d want repeated borrowing across maturities, lenders continuously recycling capital, and rates forming from organic demand rather than incentives. Otherwise the “curve” is mostly narrative.
There are failure modes too. Thin liquidity can distort rates, incentives can manufacture demand, and concentrated borrowers can make one collateral market look healthier than it is.
As a trader, I’d get more bullish if borrowing repeatedly returns after incentives fade and rate differences remain consistent across maturities.
The interesting signal isn’t which tokenized stock gets listed.
It’s what the market repeatedly charges to borrow against it.
#termmax @TermMax
If tokenized stocks are used as collateral to borrow stablecoins, each market starts producing its own funding rate. A highly liquid stock with reliable pricing and strong borrower demand might clear at one rate, while thinner or more volatile collateral needs another. Suddenly the rate is doing more than pricing money. It is quietly pricing how comfortable lenders are holding exposure against that collateral.
That could create a tokenized stock funding curve.
But I think the retention problem matters. One burst of borrowing after a new RWA listing tells me very little. I’d want repeated borrowing across maturities, lenders continuously recycling capital, and rates forming from organic demand rather than incentives. Otherwise the “curve” is mostly narrative.
There are failure modes too. Thin liquidity can distort rates, incentives can manufacture demand, and concentrated borrowers can make one collateral market look healthier than it is.
As a trader, I’d get more bullish if borrowing repeatedly returns after incentives fade and rate differences remain consistent across maturities.
The interesting signal isn’t which tokenized stock gets listed.
It’s what the market repeatedly charges to borrow against it.
#termmax @TermMax
